Am I Still Eligible to Apply For Paycheck Protection Programs?

Updated November 23, 2021

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A Small Business Administration-backed loan designed to assist small businesses to maintain their employees on the payroll, the Paycheck Protection Program was first established in March 2020 as a response to the COVID-19 global pandemic.

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As reported by the Small Business Administration, the Paycheck Protection Program (PPP) has run out of money for a majority of its borrowers ahead of the May 31, 2021 deadline. To date, the Payment Protection Program has offered more than $780 billion in forgivable loans as a part of the CARES Act.

Which Lenders Are Participating in the Paycheck Protection Program?

As the PPP runs out of money for its borrowers, new applications will only get accepted from select community financial institutions that primarily service minority borrowers. Previously approved applications will be honored, though no more applications outside of the community financial institution parameters will be accepted. 

Eligible lenders include certified development companies, micro-lenders, community development financial institutions, and minority depository institutions.

What are the Different Loan Offerings?

There are two types of loan offerings, based solely on whether a loan has been drawn before or for the first time.

First Draw PPP Loans

The first type of loan, First Draw PPP loans, is available only to those who have not borrowed before.

Second Draw PPP Loans

Select businesses are eligible for a Second Draw PPP loan, indicating that those who have received a PPP loan before are eligible again.

What if I Am Not Eligible For the First or Second Draw PPP Loans?

If you are ineligible for PPP loans, there are small business loan alternatives to be considered. iCapital Funding offers effective solutions for small businesses based on the business’s needs, even with a less than ideal credit score.

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Applying is free and will not affect your credit score


Business Solutions

Small Business Loans

Specializing in small business loans, iCapital Funding has years of experience working closely with small business owners, perfecting their loaning process to be quick and easy. By tailoring the processes and loans to your personal needs, iCapital Funding is knowledgeable in the business lending landscape and keen to share its expertise.

Short-Term Business Loan

If you require a short-term business loan, iCapital Funding can work closely with you to determine an appropriate loan amount and timeline for repayment. Qualifications to be eligible include providing your credit score, business bank account, three months of bank statements, and small business tax ID number.

Merchant Cash Advance (MCA)

An alternate way to raise funding, merchant cash advances (MCAs) allows businesses to receive cash in hand quickly, which is paid back through company credit transactions.

Invoice Factoring

Small businesses can finance a cash advance on their accounts receivables through invoice factoring. This method pulls from credits that have already been earned and makes the cash easily accessible. 

There are two invoice factoring tactics: spot factoring and whole ledger factoring. The former indicates that you sell a single invoice with no contract in place, while the latter requires you to sell your entire book of accounts receivables and sign a contract.

In Conclusion

The Paycheck Protection Program is no longer accepting applications to maintain employees on the payroll unless the application is submitted by a community financial institution. Lenders include CDCs, micro-lenders, CDFIs, and MDIs. 

If you require assistance from the PPP but are no longer eligible to apply for first or second draw PPP loans, there are alternative resources available to you. iCapital Funding has small business loans, short-term business loans, merchant cash advances, and invoice factoring offerings. iCapital Funding can provide pre-qualification, forgo credit inquiries, and offer quick approval. 

With the variety of offerings, you are able to explore each venue and choose the loan most fitting for your business needs.

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